1098-T Box 5 > Box 1?

BillW

My son's 1098-T has a box 5 scholarship amount that is $105 greater than the box 1 amount paid. No other educational expenses are claimed. I expected to see that $105 added to taxable income via Schedule 1 but it didn't happen. Is that correct?

KristineS

Hi BillW,

The $105 may or may not be taxable depending if the scholarship money was used for anything other than qualified education expenses. An entry to Room and Board for the $105 would add the income to Other Income for instance.

Be sure to look at Coordination with Pell grants and other scholarships on age 16 of the PDF version of the publication. This may or many not apply to your son's situation.

See Publication 970, Chapter 1 for more details on what expenses qualify.